HDI and energy consumption

The Human Development Index (HDI) is a composite index published by UNDP that measures average achievement in three dimensions: a long and healthy life (life expectancy at birth), knowledge (mean and expected years of schooling), and a decent standard of living (GNI per capita, PPP). Its value ranges from 0 to 1, and HDI is the geometric mean of the three dimension indices.

Relation between HDI and energy consumption

Energy is needed for each HDI dimension:

• Health: clean water, hospitals, refrigeration, clean cooking (less smoke-related disease).
• Education: lighting, computers, internet and schools.
• Income: industry, farming and transport run on energy, so GDP per capita rises with energy use.

Data show a strong positive but non-linear relation: HDI rises quickly as per-capita energy (or electricity) use increases from very low levels, and then levels off. Roughly, an HDI near 0.8 (a high level) is reached at about 1.5–2 toe of primary energy per person, or about 2,000–4,000 kWh of electricity per person. These are two separate indicators, not a unit conversion (1 toe = 11,630 kWh). Beyond about 4,000–5,000 kWh per person, extra energy brings little extra HDI. Some countries use more for the same HDI; China, with its heavy industry, uses about 6,000 kWh per person for an HDI of about 0.78.

(Values are approximate and change every year.)

Justification

Countries with low energy use (Nepal, many African countries) have low HDI, and high-energy countries (Norway, Germany, Japan) have high HDI. So energy consumption is a necessary condition for development, although efficient use matters too: some countries reach a similar HDI with half the energy of others.